₹188 Crore Aid Package Announced for Andhra's FCV Tobacco Farmers

The Central Government and the Andhra Pradesh Government have jointly announced a ₹188 crore financial assistance package for tobacco farmers, offering much-needed support as falling global prices and weak export demand continue to weigh on the sector. Under the package, farmers will receive an incentive of ₹20 per kilogram for the procurement of 94 million kilograms of Flue-Cured Virginia (FCV) tobacco.

Announcing the decision, Agriculture Minister Kinjarapu Atchannaidu said the state had secured the Centre's support despite financial constraints. He said all preparations for the procurement exercise have been completed, and the purchase of tobacco is expected to commence within the next few days, ensuring timely relief for farmers.

The minister said FCV tobacco farmers have been facing one of their toughest marketing seasons due to a combination of international challenges. Ongoing geopolitical tensions, subdued global demand, and increased supplies of lower-priced tobacco from major producers such as Brazil and Tanzania have weakened export markets and depressed domestic prices, making it difficult for farmers to secure remunerative returns.

He added that the Tobacco Board, the Union Government, and the state administration are working in close coordination with tobacco companies and traders to expedite procurement and stabilise the market. The intervention is expected to reduce distress sales while providing immediate financial support to farmers affected by the prolonged downturn.

Recalling earlier interventions, Atchannaidu said the previous TDP government had extended a similar ₹20-per-kg incentive when FCV tobacco prices crashed during the 2014-15 marketing season. He also noted that between 2014 and 2019, the government procured 25 million kilograms of HD Burley tobacco at a cost of ₹270 crore, helping farmers tide over severe market volatility.

The minister criticised the previous YSRCP government, alleging that it procured only 11 million kilograms of tobacco between 2019 and 2024, leaving many farmers without adequate support. He said the present government welcomes constructive suggestions from all political parties if they contribute to farmers' welfare. However, he cautioned that public statements capable of creating uncertainty in the tobacco market could adversely affect farmers and urged political leaders to focus on measures that strengthen the sector rather than undermine farmer confidence.